When you’re living on a fixed income for your retirement, it’s important to keep your costs under control, whether that’s cutting the cost of healthcare or making the most of your savings. Living more frugally can be done at any income level and can help you have more to live on in your later years and cut the costs of retirement.
How to Cut the Costs of Retirement
Know What You Spend Your Money on Now
It’s easier to cut spending when you know how much you are spending on what. In order to start reducing your expenses, it’s best to get a clear understanding of how your money is being spent. Keep a record, in a notebook, spreadsheet, software program, or on your phone. A lot of people end up surprised by how much little things can add up.
If you’re shocked by a particular cost, you can address it. If you spend a lot on food, switch to a cheaper supermarket. If you’re spending a lot on at-home healthcare, try a service like Freedomcare, which will pay a family member to care for you.
Create Long Term Budget Projections
Your budget for retirement will determine how much you will need to save to be secure. It’s important to get this right. Trying to accurately estimate your expenses for the rest of your life seems daunting, it can be easy with the right tools and advice. You can find big opportunities for cutting costs.
You can use planners to allow you to document current and future expenses for everything. Housing and medical bills will likely be your biggest expenses, so you should consider ways to cut these costs. You can create a detailed budget and specify the amounts that you would like to spend versus how you need to spend.
Stay Healthy and Have the Right Medical Coverage
Many retirees spend more in the lifetime on out-of-pocket healthcare costs than they can really afford.
You can do a lot to cut the costs of healthcare by staying as healthy as you can. Eat well, exercise, and cut out vices like cigarettes and excessive alcohol consumption. Shop around for the best medical coverage every year, as plans change.
Do It Yourself
When you have retired, you usually have more free time. This can mean that you have more time to take on some household maintenance tasks that you used to hire someone to do. If you have some DIY skills, you could save a lot by doing this.
As well as saving money, by keeping busy with physical tasks, you’re likely to live a longer, healthier life.
Travel in the Off-Season
A lot of people have travel as one of the main things they want to do once they’re retired, as they have more time. One of the advantages of being retired is that you’re restricted by when a job can let you have time off, so you can set your own travel schedule in a way that saves money.
Whenever you can, travel in the offseason, when prices are lower, and group multiple small trips into one bigger trip if you can. These tactics can save you a lot of money.